Malawi's president and ministers take 10% salary cut to fight coronavirus

Malawi's president and cabinet will take a 10% salary cut and redirect the money towards the fight against coronavirus, President Peter Mutharika said on Saturday.

In an address on state television, Mutharika announced a number of measures aimed at cushioning small- and medium-sized businesses, including tax breaks, a reduction in fuel allowances and an increase in risk allowances for health workers. Mutharika also ordered the country's tobacco markets to be opened and allowed to operate without disruption to protect small farmers and bolster foreign currency receipts. Tobacco is Malawi's chief foreign currency earner.

"We have an unprecedented situation. Government has taken these measures to ensure continuity," he said. Amongst other measures, the president directed the Reserve Bank of Malawi to allow banks to offer a three-month moratorium on interest payments on loans to small- and medium-sized businesses.

He also ordered the country's Competition and Fair Trading Commission to put in place strict monitoring of price controls and punish anyone found increasing prices at the expense of Malawians. "The government will continue monitoring and review the situation as it infolds," Mutharika said.

He also ordered all non-essential service providers in both the government and private sector to work from home with immediate effect. On Thursday, Malawi recorded its first three confirmed cases of the coronavirus. On Saturday, the number rose to four.